The Middle East’s 10 Most Expensive Retail Locations

Middle East retail rents staganted in the 2010/11 period which ended in June, according to research consultants Cushman & Wakefield (C&W).

This downward trend was in sharp contrast to the growth seen in other emerging markets. Not surprisngly, some of the countries most affected by the Arab revolt saw the most severe declines. Bahrain’s retail rents fell 26.7% during the period, while Syria saw a 16.7% decline.

Meanwhile, UAE (3.0%) and Qatar (2.2%) registered more modest falls. Rental uplift was confined to Lebanon (5.2%) – where values in the top shopping areas of Beirut proved resilient to external factors.

“The majority of the falls were driven at least in part by the precarious political situation in a number of countries,” said C&W in a report. “Following the unrest starting in Northern Africa and parts of the Middle East, the retail market has been aff ected by a reduction in tourist spending and a reluctance of retailers to progress with expansion.

Indeed, a number of plans have now been postponed and, as a consequence, have adversely aff ected leasing activity. The downward pressure on rents also stemmed from an oversupply of retail space, with the surplus especially evident in the Gulf markets, where development has been highest. Combined with the comparative monopoly of a handful of local franchisees, which control the majority of brands, this has produced a more subdued growth picture.”

Take a look at the most expensive retail locations in the Middle East North Africa region.

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